CHAPTER 11

CHAPTER 11 - International Trade Law Chapter 11 CHAPTER 11...

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International Trade Law Chapter 11 CHAPTER 11 REGULATING IMPORT COMPETITION AND UNFAIR TRADE I. Safeguards Against Injury A. Introduction 1. Topics in this chapter includes the regulation of import competition through laws that “safeguards” domestic industries and the regulation of “unfair trade” relating to dumping and subsidies 2. Safeguards - relief for domestic industries; temporary corrective action to protect domestic industry from severe market disruption caused by increased imports; temporary timeout from rules of trade which can stun innovation/more competitive 3. Two forms of Safeguards: a. Tariffs (preferred) b. Quotas (illegal under GATT, not preferred) B. GATT and Safeguards 1. GATT Escape Clause - Article XIX of GATT 1947, authorizes a country to take temporary corrective action to adjust import levels of certain products, thus safeguard domestic industry 2. GATT 1994 and Safeguards - may apply safeguard only if that product is “being imported in such increased quantities and under such condition as to cause/threaten serious injury to the domestic industry that produces like or directly competitive products 3. Serious injury - a significant overall impairment in the position of a domestic industry” 4. A threat of a serious injury must be “ imminent 5. Domestic industry - producers as a whole as opposed to just one firm in the industry 6. Temporary - 4 years term plus one 4 years extension. Could re-use it protectionism! 7. No discrimination regardless of products origin, and only as necessary to prevent or remedy serious injury J. Duong 1
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International Trade Law Chapter 11 8. “Safeguards may not be more restrictive than necessary to prevent or remedy a serious injury and to facilitate adjustment” 9. Restriction on imports must be gradually lifted as conditions warrants; must be removed if conditions improved 10. Tariffs preferred, but if a quota is used, it may not reduce the quantity of imports
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CHAPTER 11 - International Trade Law Chapter 11 CHAPTER 11...

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